On the 17th, the Bank of Korea directly hit the Financial Services Commission, which is struggling with the amendment to the Electric Fund Act. On that day, the BOK pointed out that the amendment to the Electric Fund Act, initiated in November last year, invaded the BOK’s own business areas.
The main point of the amendment is that the’Electronic Payment and Trade Administration Industry’ is established, and the Financial Services Commission has the authority to permit and supervise the institutions in charge of the relevant business. All transactions between fintech and big tech companies were mandated to be processed through the system of the electronic payment transaction clearing institution.
The BOK said, “If the amendment to the Electric Money Act is passed, the Financial Services Commission will actually collect all transaction information of big tech companies such as Naver through the KFTC without any restrictions.”
According to the amendment, big tech companies such as Kakao Pay are obligated to provide all customer transaction information to the Financial Clearinghouse. At this time, the Financial Services Commission can access the Big Tech transaction information collected by the KFTC without any restrictions, which means that a specific institution is excessively acquiring individual transaction information, which may violate the Personal Information Protection Act. The opinion of the majority of experts that the right to self-determination of personal information based on the constitution is also infringed, said the Han Eun.
“The Financial Services Commission is holding on to user protection and transaction transparency for the reasons of collecting transaction information from big tech companies,” said the BOK. “This is no different from installing CCTV in all homes to prevent domestic violence and watching.”
“As a result of checking through the People’s Bank of China, it was confirmed that the Chinese government does not look into the internal transactions of big tech companies,” he said. “No other government in the world can find an analogy.”
In addition, the BOK said, “The payment and settlement system is the basis of the financial system that supports smooth economic activities by dissolving the bond-debt relationship of economic actors.” He emphasized.
Lastly, the BOK said, “This amendment to the Fund Act is aimed at reorganizing laws and systems for innovation and stability of digital finance,” and emphasized that the’Big Brother’ clause related to the e-payment and transaction office industry in the amendment should be deleted.
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